Knowledge Management

Module I

Essentials of Knowledge Management

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Many Questions

~ What is knowledge ?~ How knowledge is different from information ?~ What is knowledge management ?~ Can we capture knowledge ? ~ Can we store knowledge ?~ Is KM a new thing ?~ Do we need KM for luxury or survival ?~ How knowledge acquisition is different from learning ?~ How knowledge transfer is different from education ?

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Many Questions

This training course will enable the trainees to answer these questions as well as many other relevant ones.

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Management

The essence of management is decision making

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Management

The essence of management is decision making

Decision making is the process of selecting an alternative among two or more possible alternatives

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Management

The essence of management is decision making

Decision making is the process of selecting an alternative among two or more possible alternatives

The right selection depends on the successful expectation of the outcomes of each alternative and

matching these outcomes with the desired goal

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Management

The essence of management is decision making

Decision making is the process of selecting an alternative among two or more possible alternatives

The right selection depends on the successful expectation of the outcomes of each alternative and

matching these outcomes with the desired goal

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Decision Making

The decision making process takes place under one of three conditions:

~ Under certainty~ Under risk~ Under uncertainty

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Decision Making

Under Certainty

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Outcome A

Outcome B

Selection

Alternative A

Alternative B

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REALITY

Decision Making

Under Certainty

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Outcome A

Outcome B

Selection

Alternative A

Alternative B

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GOAL

REALITY

Decision Making

Under Certainty

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Outcome A

Outcome B

Selection

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GOALCOMPARE

REALITY

Decision Making

Under Certainty

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Outcome A

Outcome B

Selection

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GOAL

COMPARE

REALITY

Decision Making

Under Certainty

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Decision Making

Under Certainty

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Location A

Location C

Selection

LEFT

RIGHT

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ADDRESS

STRAIGHT Location B

Decision Making

Under Risk

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Outcome A.1

Outcome B.2

Selection

Outcome A.2Alternative A

30%

70%

Outcome B.1Alternative B80%

20%

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REALITY

Decision Making

Under Risk

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Decision Making

Under Uncertainty

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Selection

Alternative A

Alternative B

?

?

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REALITY

Decision Making

Under Uncertainty

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Business Environment

Drivers of Uncertainty

~ Number of interacting factors (simple vs. complex)~ Factors’ rate of change (static vs. dynamic)

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Decision Making

Levels of Uncertainty

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  Simple Complex

Static Low perceived uncertainty Moderately low perceived uncertainty

Dynamic

Moderately high perceived uncertainty

High perceived uncertainty

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Decision Making

Levels of Uncertainty

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  Simple Complex

Static Low perceived uncertainty Moderately low perceived uncertainty

Dynamic

Moderately high perceived uncertainty

High perceived uncertainty

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Decision Making

Levels of Uncertainty

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Low uncertainty

Moderately low

uncertainty

Moderately high

uncertainty

Highuncertainty

Decision Making

Certainty vs. Uncertainty

~ Uncertainty implies unknowing the outcomes of each feasible alternative

~ Decision making under uncertainty is very dislikeable

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Decision Making

Certainty vs. Uncertainty

The information revolution has shaken the stability of the business environment causing the conditions of many

decision makings to change from certainty to uncertainty

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Decision Making

Certainty vs. Uncertainty

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Low uncertainty

Moderately low

uncertainty

Moderately high

uncertainty

Highuncertainty

New business

paradigm

Decision Making

How to Encounter Uncertainty ?

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Decision Making

How to Encounter Uncertainty ?

LEARNING

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Decision Making

How to Encounter Uncertainty ?

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Low uncertainty

Moderately low

uncertainty

Moderately high

uncertainty

Highuncertainty

New business

paradigm

Learning

Decision Making

How to Encounter Uncertainty ?

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Village A

Village B

Villa

ge C

Acquire information about the outcomes of each alternative

Learning

The American Heritage Dictionary

Learn: ~ To gain knowledge ~ To cause to acquire knowledge ~ To acquire experience or ability or skill ~ To become aware ~ To become informed

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Learning

Learning is About

~ Information acquisition~ Knowledge acquisition

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Learning

Information Acquisition

Referred to as, knowing that

For example

~ learning the names of things (cave, house, elephant) ~ Learning concepts (farming, settling, trading) ~ Learning descriptions (big, thin, beautiful)

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Learning

Knowledge Acquisition

Referred to as, knowing how

For example

~ learning to build a house

~ Learning to grow crops

~ Learning to design an airplane

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Learning

Which is More Important ?

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Learning

Which is More Important ?

Throughout history, man’s survival was more related to knowing how than knowing that

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Learning

Which is More Important ?

Knowing how to hunt an elephant is more important than naming it or describing it.

So is knowing how to grow crops, to make weapons, to drive a car, to cure illness, etc.

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Learning

If learning is not new

What is new then ?

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Learning

If learning is not new

What is new then ?

Organizational Learning

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The Learning Organization

In order to survive in the uncertain business

environment, organizations have to learn; that is, organizations have to avoid making decisions under

uncertainty

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The Learning Organization

Organizational learning is about the acquisition of

information and knowledge when making decisions

Organizational learning involves adjustment of behavior to reflect the gained experience

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The Learning Organization

A learning organization is about the frequency at which an organization performs organizational learning

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The DIK Hierarchy

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Data, Information and Knowledge

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data

information

knowledge

The DIK Hierarchy

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Data, Information and Knowledge

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data

information

knowledge

learning

The DIK Hierarchy

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data

information

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The DIK Hierarchy

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data

information

structuring

Analyzing

Mining

The DIK Hierarchy

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data

information

structuring

Analyzing

Mining

Example

List of patients admitted to a hospital in a month

The DIK Hierarchy

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data

information

structuring

Analyzing

Mining

Example

Statistics on admitted patients:Age

GenderDiseasesDistricts

The DIK Hierarchy

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data

information

structuring

Analyzing

Mining

Hidden relationships:

ExampleDistricts with illness

Time of year with illness and with gender

The DIK Hierarchy

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data

informationOther

individuals

The DIK Hierarchy

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data

informationOther

individuals

Example

the individual who created the information from data provides the information

to his/her manager

The DIK Hierarchy

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data

informationOther

individuals

Environment

Example

Clews in a crime scene

The DIK Hierarchy

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data

information

knowledge

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Information

sources

The DIK Hierarchy

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Pull vs. Push Learning

data

information

knowledge

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Self-basedlearning

Pull

Information

sources

The DIK Hierarchy

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data

information

knowledge

instructor-based learning

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Push

Instructors

Pull vs. Push Learning

The DIK Hierarchy

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Learning

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The DIK Hierarchy

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self-based learning

instructor-based learning

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The DIK Hierarchy

Instructor-based Learning~ School education

~ College education

~ Training programs

Self-based Learning~ Work experience

~ Self study and research

~ Life experience

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Data

A common definition

Simple or raw facts

examples

~ name of a person~ Price of a merchandise~ color of the sky

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The DIK Hierarchy

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Information

A common definition

Data structured in a meaningful format

An interesting definition

There is nothing that is not information

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The DIK Hierarchy

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DefinitionsEven data carry information

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The DIK Hierarchy

DatainformationMohammadHe is Muslim. He is

male

KatrinaShe is Russian. She is female

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DefinitionsEven data carry information

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The DIK Hierarchy

DatainformationSky is blueIt will not rain

Sky is darkIt will rain

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DefinitionsEven lack of information is information

There is no sound inside the house

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The DIK Hierarchy

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DefinitionsEven lack of information is information

There is no sound inside the houseThe kids must be sleeping

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The DIK Hierarchy

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Knowledge

Many definitions

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The DIK Hierarchy

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Knowledge

~ “justified true belief”~ information in context~ understanding based on experience~ the capacity for effective action

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The DIK Hierarchy

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Knowledge

~ Philosophical perspective~ Business perspective

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The DIK Hierarchy

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Knowledge in Business

What is the problem for organizations ?

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The DIK Hierarchy

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Knowledge to Business

We are living the knowledge-based business paradigm

A few youngsters with a web site could create profit more than a large manufacturing company

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The DIK Hierarchy

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Knowledge to Business

Human intelligence is an important organizational resource

Creative employees are able to continuously envision new opportunities and provide better solutions to business problems

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The DIK Hierarchy

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Knowledge to Business

Knowledge is the capacity to solve business problems

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The DIK Hierarchy

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Information vs. Knowledge

~ Organizational information is preserve able

~ Organizational knowledge seems not; knowledgeable employees could easily leave the organization taking their knowledge with them

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The DIK Hierarchy

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Information vs. Knowledge

~ Organizational information is preserve able

~ Organizational knowledge seems not; knowledgeable employees could easily leave the organization taking their knowledge with them

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The DIK Hierarchy

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Information vs. Knowledge

~ Organizational information is preserve able

~ Organizational knowledge seems not; knowledgeable employees could easily leave the organization taking their knowledge with them

Is it their knowledge or the organization’s knowledge ?

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The DIK Hierarchy

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~ Organizations invest in their employees, so they do have a right in the knowledge that the employees are holding cognitively

~ While serving as employees, knowledge acquisition and sharing needs to be effectively and efficiently nurtured.

~ When employees plan to leave, their organizations are entitled for a copy of their knowledge.

This calls for Knowledge Management

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Organizational Knowledge

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Knowledge Management

What is Knowledge Management ?

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Knowledge Management

knowledge management is the management of knowledge processes

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~ knowledge transfer~ knowledge representation~ knowledge storage~ knowledge creation~ knowledge acquisition~ knowledge sharing~ knowledge application

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Knowledge Transfer

If knowledge acquisition falls under learning, what does knowledge transfer fall under ?

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Knowledge Transfer

If knowledge acquisition falls under learning, what does knowledge transfer fall under ?

Knowledge transfer falls under teaching or training

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Knowledge Transfer

If knowledge acquisition falls under learning, what does knowledge transfer fall under ?

Knowledge transfer falls under teaching or training

Which is instructor-based learning79

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Information Transfer

Shannons’s Mathematical Theory of Communication

~ A theory to measure the amount of information in a signal

~ Communication involves the sending of a signal of some type through some medium to a receiver

~ Noise in the channel could interfere with the clarity of the signal causing difficulty in decoding at the receiver end

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Information Transfer

Shannons’s Mathematical Theory of Communication ~ The concepts underlying the theory may be expanded to a broader vision of communication

~ The signal may be taken to mean information

~ Communication then is a process involving transmission of information in whatever form via whatever vehicle to a receiver

~ Information is the stuff of communication

~ Information is not limited to language or words. There is information in level of excitement, tone of voice, speed of speech, movements and even moments of silence

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Information Transfer

Information

Is input from any source that has the potential to affect, reduce, or supplement a state of uncertainty to allow

decisions to be made or communication to occur

Norton, MelanieIntroductory concepts in information science

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Information Transfer

Information

~ Data may be a source of information

~ Knowledge may be a source of information

~ Shapes of things around us may be a source of information

~ Our environment continuously communicate information which we receive through our sensory system and we attempt to interpret it in order to decrease uncertainty

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Information Transfer

Information

~ Hence, information transfer implies:

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Transmitter Receiver

InformationPerson APerson B

Information Transfer

Information

Decreasing uncertainty requires gaining more information, but increasing information may not always resolve

uncertainty

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Knowledge Transfer

Can knowledge replace information in being the stuff of communication ?

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Person A Person B

Transmitter Receiver

knowledge?

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Knowledge Transfer

~ If yes, then knowledge can be directly transmitted through some type of medium to a receiver

~ If knowledge can be directly transmitted , then knowledge is somehow sensible

~ BUT, we already have identified every sensible thing as information

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Knowledge Transfer

~ Unlike data and information, knowledge is insensible~ Knowledge cannot exist outside human cognition~ Anything outside human cognition is either data or information~ Why do we need to invent something new like explicit knowledge ?~ How then would we differentiate between explicit knowledge and information ?

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Knowledge Transfer

~ Knowledge is non-transferable directly

~ To transfer knowledge it has to be first transformed into information

~ Hence, knowledge transfer implies:

transformation + communication + interpretation

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The DIK Hierarchy

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data

information

knowledge

Person B

data

information

knowledge

Person A

representation

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The DIK Hierarchy

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data

information

knowledge

Person A

data

information

knowledge

Person B

communication

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The DIK Hierarchy

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data

information

knowledge

Person A

data

information

knowledge

Person B

interpretation

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Knowledge Transfer

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Knowledge transfer =

Knowledge representation +

information communication

+information interpretation

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Knowledge Transfer

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Knowledge transfer =

Knowledge representation +

information communication

+information interpretation

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Knowledge Representation

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~ Knowledge may act as a source of information

~We transform knowledge into information through a process that we call knowledge representation

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Knowledge Representation

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Is the represented knowledge (information) equal to the original knowledge?

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Knowledge Representation

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Is the represented knowledge (information) equal to the original knowledge?

Is a photo of a natural landscape equal to the landscape itself?

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Knowledge Representation

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Is the represented knowledge (information) equal to the original knowledge?

Is a photo of a natural landscape equal to the landscape itself?

CERTAINLY NOT

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Knowledge Representation

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KNOWLEDGE

KNOWLEDGE

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Knowledge Representation

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Represented knowledge is an inferior depiction of original knowledge

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Knowledge Representation

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Represented knowledge is an inferior depiction of original knowledge

The trick is to minimize the amount of inferiority

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Knowledge Representation

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KNOWLEDGE

KnoWLEDGe

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Knowledge Representation

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KNOWLEDGE

KKOwLEGDE

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Knowledge Representation

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Is knowledge representation a new concept?

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Knowledge Representation

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Is knowledge representation a new concept?

CERTAINLY NOT

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Knowledge Representation

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How about ancient scripts ?

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Knowledge Representation

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How about new languages ?

There is a relationship between the level of civilization and the amount of population. As the level of civilization increases, the amount of population increases.

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Knowledge Representation

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How about mathematical equations ?

Y = level of populationX = amount of civilization

Y = 1.4 X + 3.6

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Knowledge Representation

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How about graphical illustration ?

level of civilization

amount of population

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Knowledge Representation

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How about drawings ?

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Knowledge Representation

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How about modeling ?

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Knowledge Representation

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Obviously, there are many knowledge representation techniques

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Knowledge Representation

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Obviously, there are many knowledge representation techniques

So, what is the best knowledge representation technique ?

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Knowledge Representation

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The best representation technique is the one that allows the production of rich

information

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Knowledge Representation

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Rich Information

Allows the recipient to easily and correctly interpret it in the smallest period of time

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Knowledge Representation

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Rich information would produce the best depiction of original knowledge, thus

minimizing inferiority

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Knowledge Representation

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data

information

knowledge

Person A

data

information

knowledge

Person B

interpretationrepresentation

communication

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Knowledge Representation

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data

information

knowledge

Person A

data

information

knowledge

Person B

interpretationrepresentation

communication

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Knowledge Representation

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knowledge

interpretation

Information

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Knowledge Representation

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knowledge

interpretation

Information

The richer

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Knowledge Representation

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knowledge

interpretation

Information

The easier

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Interpretation

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Rouse (1993) was interested in understanding how people form their perceptions and consequently make their decisions. An understanding of this process would confront the uncertainty about the customers’ perception of a product and ensuring the formation of positive perceptions. Figure 5 shows Rouse’s (1993) model.

Interpretation

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Nature

Information

Knowledge

Perception DecisionsBeliefs Needs

Nurture

Interpretation

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~ Knowledge refers to education and experience

~ Nature refers to genetic influences

~ Nurture refers to effects of childhood, cultural influences, economic situations, etc. ~ Information is what is known about the object of perception

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Interpretation

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Rouse contends that the potential effect of needs and beliefs is the highest, but it takes

long time to create a change in those constructs

Changing information is quicker but it has less effect on changing the perception.

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Knowledge Representation

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So, which knowledge representation technique results in richer information ?

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Knowledge Representation

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So, which knowledge representation technique results in richer information ?

Consider an example

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To improve life in city X, its government carries out developmental projects. The number and type of developmental projects affect city X’s level of modernization. The modernization level changes proportionally and immediately with the changes in spending on

developmental projects .

However, the increase in city X’s level of modernization has been attracting people from other cities. The change in the number of people moving from other cities is estimated at double the change in the level of modernization. When deciding to move to city X, it takes people from other cities three months to actually move. Their number affects the number of inhabitants of X proportionally and immediately.

Unfortunately, as the number of inhabitants increases, the amount of garbage increases from what it was proportionally and immediately. The increase in the amount of garbage increases the risk of fatal disease; the change in the number of people affected by fatal diseases is half the change in the amount of garbage. It takes two months for the number affected by fatal diseases to change when the amount of garbage changes .

Fatal diseases cause loss of life. The change in the number of X’s inhabitants is proportional but algebraically negative to the change in its number of inhabitants affected by fatal diseases. It takes two months for diseases to have an effect on the number of

inhabitants .

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The Number of Inhabitants of City X

The Number of People Moving to City X from Other Cities

The Modernization Level of City X

The Amount ofGarbage

The Government’s Developmental Projects

The Number of Inhabitants Affected by Fatal Diseases

+2 ,3 m

+1 ,0 m

–1 ,2 m +1 ,0 m

+1 ,0 m

. +5 ,2 m

Comprehensive Situation MappingWilliam Acar (1983)

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Knowledge Representation

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Information

Knowledge

Perception Decisions

+1 ,0 m

+3 ,0 m

Nature

Beliefs Needs

Nurture

+5 ,36 m

+5 ,36 m

+5 ,0 m

Rouse’s Model Using CSM

Knowledge Representation

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+5 ,0 m

Nature

Beliefs Needs

Nurture

Current knowledge

interpretation

Information

Acquired knowledge

+3 ,0 m

+1 ,0 m

+5 ,36 m

+5 ,36 m

Rouse’s Model with DIK

Knowledge Storage

Storing the represented knowledge

~ The language (text or audio)~ The equations~ The drawings~ The models

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Knowledge Sharing

Direct knowledge transfer or allowing access to knowledge storage

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~ Lecturing~ Audio/video conferencing

~ Printed material~ CDs and DVDs

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Knowledge Creation

This is the result of discoveries, innovation or R&D

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~No one knew the knowledge before its creator

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Knowledge Acquisition

Takes place when an individual successfully interprets a received information

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~All knowledge creation processes involves knowledge

acquisition processes

~Knowledge creators shares their knowledge with others

allowing them to acquire new knowledge

~NOT all knowledge acquisition processes involves

knowledge creation processes

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Knowledge Application

When knowledge is put into action to make righteous decisions and solve problems

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Wisdom

Does the application of knowledge always lead to solving a problem ?

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Knowledge vs. Wisdom

Wisdom

The degree to which a problem is solved and the frequency of maintaining high success

degrees is a personal matter

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Knowledge vs. Wisdom

Wisdom

So, knowledge is about knowing the right option to solve the problem and the procedure

for applying the option

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Knowledge vs. Wisdom

Wisdom

So, knowledge is about knowing the procedures for solving the problems

Wisdom is about the frequency of successfully applying the procedures for solving the

problems

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Knowledge vs. Wisdom

Wisdom

Wisdom depends on the skills of the knowledgeable individual

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Knowledge vs. Wisdom

Wisdom

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Knowledge vs. Wisdom

data

information

knowledge

wisdom

Skillful application

END

MODULE I

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